Technical outlook and chart setups:
The EUR/JPY pair rallied through the levels of 126.80 yesterday. The pair is trading at 126.50 now, looking for an opportunity to reverse lower below 122.00. Please note that the rally from 122.00 is likely to be corrective until now, and a bearish reversal here would bring bears back into control. The wave structure also reveals that the pair might just have completed wave 4 corrective rally that begun from 122.00 earlier. It is hence recommended to take profits on long positions taken earlier and turn bearish now with risk at 128.50. Immediate resistance is seen at the level of 128.20, while support is found at 123.50. Watch out for a bearish reversal at the current levels.
Trading recommendations:
Please take profits on long positions taken earlier and turn bearish with stop at 128.50, a target is open.
Good luck!
The material has been provided by InstaForex Company - www.instaforex.com